Las Vegas Bankruptcy and Death

We’ve seen it happen here in Las Vegas. Someone files for a Las Vegas bankruptcy, and then days, weeks or months later, he or she passes away.

What happens when a debtor in bankruptcy dies?

Nothing remarkable. For the most part, the case continues as it had before. The bankruptcy trustee will continue to administer the estate, bearing in mind that the debtor’s funeral expenses now have a special priority in the order of payments to creditors. A personal representative from the deceased debtor’s probate estate may step into the debtor’s shoes to supply any information the bankruptcy trustee or the Bankruptcy Court needs.

What’s the benefit, you ask, of a bankruptcy case continuing once the debtor has died?

Plenty.

A debtor’s debts do not die along with him. Creditors will still be able to come after the deceased debtor’s property, much to the dismay of the beneficiaries of the debtor’s estate. Continuing the bankruptcy case will ensure that may of the debtor’s debts are discharged, and will therefore allow the debtor’s beneficiaries to enjoy the property bequeathed to them without fear of creditors pursuing it.

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This website is an advertisement. The information presented at this site should not be considered formal legal advice nor the formation of a lawyer or attorney-client relationship. You are advised that the acts of sending e-mail to or viewing or downloading information from this website does not create an attorney-client relationship. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Assistance we provide may include bankruptcy relief under Title 11.